More than one in five Dubai rental transactions in the third quarter recorded lower rents than the previous contract, indicating that tenants are gaining greater negotiating power as new homes enter the market.
Property consultancy Cavendish Maxwell found that 21.4 per cent of rental transactions involved a reduction, compared with just 4.8 per cent in the first quarter. Another 38.7 per cent renewed at unchanged rents.
The shift comes after Dubai delivered approximately 38,000 residential units between January and September, a 41.4 per cent increase compared with the same period last year.
Average rents continued to rise annually, but growth slowed significantly. The consultancy expects additional housing supply to put further pressure on rental increases, particularly for apartments.
For residents approaching lease renewals, the figures suggest there may be greater scope to negotiate, depending on the neighbourhood, property and prevailing market conditions.